The Capital Gains Tax (Pension Funds Pooling Schemes) Regulations 1996

Explanatory Note

(This note is not part of the Regulations)

These Regulations provide for certain unauthorised unit trust schemes (“pension funds pooling schemes”) to be excepted from the definition of unit trust scheme given by section 99(2)(a) of the Taxation of Chargeable Gains Act 1992. A pension funds pooling scheme is a scheme participation in which is restricted to certain pension schemes or funds and which has the characteristics set out in the Income Tax (Pension Funds Pooling Schemes) Regulations 1996 (S.I. 1996/1585).

The effect is that a capital gain or loss accruing on the disposal by the trustee of the scheme of any part of the scheme property will be treated, so far as capital gains tax is concerned, as being a capital gain or loss accruing to the participants, the proportion of that gain or loss attributable to any participant being determined by the size of that participant’s share of the scheme property.

Corresponding Regulations in connection with pension funds pooling schemes have also been made for the purposes of income tax (S.I. 1996/1585) and stamp duty and stamp duty reserve tax (S.I. 1996/1584).